Flexible manufacturing competence and capability on product development performance
by Sunil Hwang; Seong-Jong Joo
International Journal of Services and Operations Management (IJSOM), Vol. 47, No. 3, 2024

Abstract: Existing studies have examined the relationship between manufacturing flexibility and firm performance using various performance measures such as operational outcomes, customer satisfaction levels, and financial results. We examine the relationship between flexible manufacturing competence and product development performance when flexible manufacturing capability partially mediates this relationship. Using Sobel's test, we analyse survey data from the manufacturing industry in South Korea, which plays a significant economic role in the world. By controlling uncertainty factors, we confirm, first, a direct relationship between flexible manufacturing competence and product development performance (Sobel's coefficient = 0.138) and, second, the partial mediation effect of flexible manufacturing capability on the relationship between flexible manufacturing competence and product development performance (Sobel's coefficient = 0.174). The major managerial implication of our study is that a firm's product development performance can be enhanced by developing flexible manufacturing competence that includes skill sets or knowledge on the flexibility of machines, labour, material handling, and routing.

Online publication date: Tue, 12-Mar-2024

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